Critical Comparison: Orbital ATK (OA) vs. The Competition
Orbital ATK (NYSE: OA) is one of 41 public companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare Orbital ATK to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.
Risk & Volatility
Orbital ATK has a beta of -0.24, suggesting that its stock price is 124% less volatile than the S&P 500. Comparatively, Orbital ATK’s rivals have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.
Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Orbital ATK pays out 23.8% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.
This is a breakdown of current recommendations for Orbital ATK and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orbital ATK Competitors||482||2164||2384||87||2.41|
Orbital ATK currently has a consensus target price of $120.07, indicating a potential downside of 9.36%. As a group, “Aerospace & Defense” companies have a potential upside of 13.82%. Given Orbital ATK’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Orbital ATK has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Orbital ATK and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Orbital ATK||$4.46 billion||$293.00 million||24.62|
|Orbital ATK Competitors||$8.89 billion||$721.62 million||208.50|
Orbital ATK’s rivals have higher revenue and earnings than Orbital ATK. Orbital ATK is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
85.8% of Orbital ATK shares are held by institutional investors. Comparatively, 73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.2% of Orbital ATK shares are held by insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Orbital ATK and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orbital ATK Competitors||-6.88%||22.51%||3.41%|
Orbital ATK rivals beat Orbital ATK on 11 of the 15 factors compared.
About Orbital ATK
Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.
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